© - ATH all rights reserved - Edition 2024 73 2024 EMPLOYER’S GUIDE INDIVIDUAL TERMINATION BY AGREEMENT Termination by agreement represents the joint wish of the employee and employer to terminate the contract. It cannot be imposed by either party. It requires a 3-step procedure : • One or more meetings between the parties, • The signing of an agreement between the employer and the employee which determines the conditions of the termination, including the pay due and date, • The approval of the agreement by the Direction régionale de l'économie, de l'emploi, du travail et des solidarités (DREETS). Such approval allows the employee to benefit from unemployment insurance. Ask us about how to implement individual termination by agreement. The payment made for individual termination by agreement is at least equal to legal, or statutory severance pay in some cases. It is subject to an employer’s contribution of 30 % payable on the exempt portion of social security contributions. COLLECTIVE TERMINATION BY AGREEMENT Collective termination by agreement is a mechanism of secured voluntary redundancies. It is implemented under the terms of a collective agreement validated by the administration. Only the employer can initiate this mode of termination. The employee concerned gives his/her consent in writing. The employer’s acceptance of the employee's application results in the termination of the employment contract by mutual agreement. The employee receives severance pay and is entitled to unemployment benefits. Ask us about the content of the agreement on collective termination by agreement. CONSTRUCTIVE DISMISSAL The employee can claim constructive dismissal due to facts attributed to his/her employer. If the facts are sufficiently serious, the termination has the effects of dismissal without due cause. Otherwise, it is deemed to be resignation. There is a schedule of pay in the event of dismissal without due cause. RETIREMENT/PENSIONING OFF By employer : pensioning off. By the employee : retirement (refer to Fact Sheet 36). Ask us about the procedures and pay. DOCUMENTS TO BE GIVEN TO THE EMPLOYEE WHEN THE EMPLOYMENT CONTRACT IS TERMINATED A certificate of employment which mentions in particular the employee’s right to the continuation of « health » cover and « employee benefits » he/she benefited from in his/her previous company. A certificate for the employment agency witch is also sent via the DSN. A full and final statement which must indicate in detail all the sums paid on termination. This can be challenged within 6 months after signing. After that, it represents full and final settlement by the employer for the sums mentioned. An employee who has sustained a loss due to the late submission of the termination documents may claim damages.
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